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Author Question: By engaging in quantitative easing, the Fed is attempting to reduce the ________, causing the MP ... (Read 22 times)

burchfield96

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By engaging in quantitative easing, the Fed is attempting to reduce the ________, causing the MP curve to ________.
 
  A) term premium and the real interest rate; shift down
  B) unemployment rate and the inflation rate; shift down
  C) short-term nominal and real interest rates; shift up
  D) federal funds rate; shift up

Question 2

In real business cycle models, a change in willingness to work ________.
 
  A) is associated with productivity shocks
  B) causes a shift of the aggregate demand curve
  C) would violate the market-clearing assumption
  D) has no effect on potential output



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mmj22343

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Answer to Question 1

A

Answer to Question 2

A




burchfield96

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Reply 2 on: Jun 30, 2018
Great answer, keep it coming :)


Mochi

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Reply 3 on: Yesterday
Gracias!

 

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